May 16, 2011 (MMD Newswire) -- The Australian Treasurer, Mr Wayne Swan, disclosed in the Federal Budget on 10 May 2011, that a $4.3 billion damages counter-claim launched by Davis Samuel Corporate Advisory Services in 1999 now has merit and poses the greatest fiscal risk to the Gillard Governments forecasted budget surplus in 2013.
Despite repeatedly denying the merits of the $4.3 Billion damages counter-claim in the 2008, 2009 & 2010 Budgets, the Treasurer has now been forced to significantly modify the 2011 Budget "Litigation Note" on page 8 of "Statement 8: Statement of Risks" after damaging evidence was tendered in the ACT Supreme Court on 5 February 2010.
The 2011 Budget "Quantifiable Contingent Liability" note now states as follows:
"Litigation
The Department of Finance and Deregulation (Finance) is involved in litigation in which a counter-claim for damages has been lodged against the Australian Government. The litigation relates to the Davis Samuel case where Finance is engaged in legal action seeking recovery of funds misappropriated during 1998.
The counter-claim, which is being vigorously defended by the Government, seeks damages of $4.3 billion. Hearing of the Government's claim, and the counter-claim, concluded in the ACT Supreme Court in September 2008. Recent advice suggests judgment is expected to be delivered during 2011."
The partners of Davis Samuel, Mr Peter Cain and Mr Allan Endresz, are extremely pleased and excited by the Treasurers ackowledment given that:
1. Justice has finally prevailed despite 12 years of misguided litigation initiated by the Australian Government.
2. Davis Samuel are self represented litigants.
3. The $4.3 Billion damages counter-claim (together with compound interest) will deny the Gillard Government a Budget surplus in 2013.
4. The damages counter-claim will increase to over $10 Billion when the ACT Supreme Court awards compound interest
So let us all hope for compound interest!
TNG Price at posting:
4.4¢ Sentiment: None Disclosure: Held
